A Rapid City couple accused of collecting more than $120,000 in illegal Social Security payments now face federal charges.

Lonnie G. Holloman, 54, and Margaret R. Holloman, 52, pleaded not guilty in U.S. Magistrate Court to charges of conspiracy, Social Security fraud, false statement and theft of government funds.

According to federal court documents, the Hollomans are accused of fraudulently collecting $123,333 in Social Security Disability Income payments between November 1998 and July 2006.

Prosecutors say the couple reported to the Social Security Administration that Lonnie Holloman was unable to work because of a back injury in 1991. However, they say Holloman worked 40 hours per week between 1998 and 2001 for Doug Faul Trucking Company as a dispatcher and long-haul truck driver.

Prosecutors also allege that Margaret Holloman, who worked for Doug Faul Trucking Company as a bookkeeper, issued payment records, such as W-2 forms, showing that Holloman was paid $500 or less per month, which is allowable under federal regulations.

Court records indicate that Margaret Holloman bought a Kenworth truck in December 2001 and started Holloman Trucking Company. Prosecutors say she employed Lonnie Holloman as a long-haul truck driver, paying him less than $500 per month regardless of how many hours he worked or how many miles he drove. The rest of the income generated by his driving was kept as revenue for Holloman Trucking Company.

According to a news release from the U.S. Attorney's Office, the maximum penalty upon conviction of conspiracy, false statement and fraud charges is five years in prison and a $250,000 fine per charge. The maximum penalty upon conviction of the theft charge is 10 years in prison and a $250,000 fine.

No trial date was set.